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Contract law

Terms Implied by the courts in order to give business efficacy

If the parties have failed to cover a matter which, when addressed, would make the
agreement unworkable, the courts imply a term to carry out the parties’ presumed
intentions.

Terms to comply with custom and usage

The courts will imply terms into contracts if they are felt to be usual in that type of
agreement, but only if it will not create an inconsistency with the express terms.

Terms implied by Acts of Parliament

Legislation can imply terms into particular contracts if Parliament has felt it is
important to give statutory protection.

Illustration 17 – Terms implied by the

type of contract

In an employment contract many matters may not be expressly agreed, but the
courts have implied terms described as duties of the employee (such as to give
honest service) or as duties of the employer (such as to use reasonable care in
providing a safe place of work).

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